1

ADC 144 

SDR Transaction Exchange Business Rules 

1. ORIGINATOR: 

a. Service/Agency: Defense Logistics Management Standards Office (DLMSO)

b. Sponsor: Supply Process Review Committee, Chair: Ellen Hilert, DLMSO 

J-6251, Defense Logistics Management Standards Office (DLMSO), 703-767-0676 (DSN 427), 

ellen.hilert@dla.mil

2. FUNCTIONAL AREA: Primary: Supply

3. REFERENCES: 

a. The official guidance for submission of SDRs is published in DLAI 4140.55/ 

AR 735-11-2/SECNAVINST 4355.18A/AFJMAN 23-215. The joint service publication is 

available at http://www.dla.mil/j-6/dlmso/Manuals/Default.htm. 

b. DOD 4140.1-R, May 23, 2003, DOD Supply Chain Materiel Management Regulation. 

This regulation requires automated SDR processing. This regulation is available at 

http://www.acq.osd.mil/log/logistics_materiel_readiness/organizations/sci/assetts/executive_info/

drid/p41401r.pdf. Refer to paragraph C3.8.1.6.4. 

c. Approved Defense Logistics Management System (DLMS) Change (ADC) 101, DLMS 

Mapping for Standard SDR/DOD WebSDR Output, DS 842A/W, June 13, 2003. 

d. ADC 114, DS 842A/R DOD Standard SDR Reply and Additional Data Content for the 

SDR Report, March 4, 2004. 

e. ADC 128, Revised SDR Transaction Exchange [Formats, Codes, & Unique 

Identification (UID)], August 16, 2004. 

f. ADC 137, Revisions for Supply Discrepancy Report (SDR) Transaction Exchange 

Supporting Security Assistance (SA) and Miscellaneous Administrative Changes 

4. REQUESTED CHANGE: 

a. Title: SDR Transaction Exchange Business Rules

b. Description of Change: This update modifies both the SDR submission (842A/W) 

and the SDR Reply (842A/R) DS to make adjustments which are required to support desired 

functionality. Specific revisions are identified below. This change removes and revises reply 

codes which support transactional exchange of SDRs. This change removed submission time 

constraints for UID discrepancies. In addition, this change updates the joint guidance to reflect 
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transition to processing of SDRs as standard logistics transactions. New transaction edits are 

identified for staggered implementation over time as DAAS and Component processing 

systems are upgraded.

c. Procedures: 

(1) Revise DLMS Supplement (DS)842A/W, Standard SDR, as follows:

Correct DLMS note: 

BNR01 353 Transaction Set Purpose Code

DLMS Note: 1. For DLMS use, the following codes are authorized. 

2. Cancellation, Request for Reconsideration, Follow-Up, 2nd Request for Reconsideration 

for FMS, and Correction (BNR01 codes 01, 15, 45, 50, and CO) require point of contact 

information, action date, and narrative comments. Correction, Follow-up (code 45), and 

Requests For Reconsideration (codes 15 and 50) must perpetuate data from the original 

SDR with updates as applicable. SDRS for these transaction types which are unmatched on 

SDR control number(s) to the recipient’s records will be treated as an original SDR. 

Add new qualifier (This is a new capability identified during business rules discussion. 

Implementation of this capability is deferred): 

28 Query 

DLMS Note: 

1. Use to indicate a follow-up SDR for status on an open SDR. Use only after interim status has 

been received. Requires point of contact information and action date. Do not perpetuate data 

contents from previous submission. This type of follow-up may not be treated as an original SDR 

because original unchanged data content is not perpetuated. 

2. This is a DLMS enhancement for future implementation and requires coordination prior to use. 

Correct DLMS Note: 

HL03 Hierarchical Level Code

I Item 

DLMS Note:

Use to identify UID data consistent with UID data requirements. The UID data is carried in the 

REF and N1 segments; the NCD segment is required by ANSI syntax; and no other segments 

are used in the UID loop. Use a separate UID loop for each item. Skip this level when not 

applicable. The UII value and some of the associated data elements are future DLMS 

enhancements and require coordination prior to use.

NCD Nonconformance Description Pos: 2300 Max: 1

Detail - Optional

Loop: NCD Elements: 2

Federal Note:

Use to reflect information related to the nonconformance condition and identify related organizations.

DLMS Note:

Begin a new NCD loop for each UID loop. The UII value and some of the associated data elements are future DLMS 

enhancements and require coordination prior to use.
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Add the following highlighted qualifiers and notes: 

LIN04 MG Manufacturer's Part Number 

DLMS Note: 

Use to identify the part number when NSN is also provided. 

Mark the following Data Element “Used” and add qualifiers below: 

LIN08 235 Product/Service ID Qualifier

Description: Code identifying the type/source 

of the descriptive number used in 

Product/Service ID (234) 

X ID 2/2 Used 1 

Code Name

CN Commodity Name 

MG Manufacturer's Part Number 

ZB Commercial and Government Entity (CAGE) Code 

LIN09 234 Product/Service ID

Description: Identifying number for a product 

or service 

X AN 1/48 Used 1 

Revise DLMS note for the qualifier “SUS – Supply Source” 

2/N101/2800 

SUS Supply Source 

DLMS Note: 

Use to identify the supply source by Routing Identifier; this is the party that directed the 

shipment. 

LIN02 235 Product/Service ID Qualifier

Description: Code identifying the type/source 

of the descriptive number used in 

Product/Service ID (234) 

Federal Note: Use for material identification.

M ID 2/2 Must use 1 

Code Name

 FS National Stock Number 

DLMS Note:

Use to identify the NSN for the material. 

 MG Manufacturer's Part Number 

DLMS Note:

Use to identify the part number for the item.

ZZ Mutually Defined 

DLMS Note:

1. Use to identify material by other than NSN or part number. 

2. This is a DLMS enhancement for future implementation.
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(2) Revise DS 842 A/R to better address material identification when NSN and part 

number do not apply. 

Add the following qualifiers with DLMS notes to 2/AMT01/2730 position 

Ref Id Element Name Req Type Min/Max Usage Rep

 LIN02 235 Product/Service ID Qualifier

Description: Code identifying the type/source 

of the descriptive number used in 

Product/Service ID (234) 

Federal Note: Use for material identification.

M ID 2/2 Must use 1 

Code Name

 FS National Stock Number 

DLMS Note:

Use to identify the NSN for the material. 

 MG Manufacturer's Part Number 

DLMS Note:

Use to identify the part number for the item.

ZZ Mutually Defined 

DLMS Note:

1. Use to identify material by other than NSN or part number. 

2. This is a DLMS enhancement for future implementation.

 LIN03 234 Product/Service ID

Description: Identifying number for a product 

or service 

M AN 1/48 Must use 1 

 LIN04 235 Product/Service ID Qualifier

Description: Code identifying the type/source 

of the descriptive number used in 

Product/Service ID (234) 

Federal Note: Use to further identify an item. 

Use multiple Product/Service ID pairs as 

needed. 

O ID 2/2 Used 1 

Code Name

 CN Commodity Name 

DLMS Note:

Use to identify the nomenclature associated with the item identified above.

 F7 End-Item Description 

DLMS Note:

Use to identify the end item associated with the Security Assistance (SA) product quality 

deficient material. 

 F8 Next Higher Used Assembly 

DLMS Note:

Use to identify the next higher assembly associated with the Security Assistance (SA) product 

quality deficient material. 

 ZB Commercial and Government Entity (CAGE) Code 

DLMS Note:

Use to identify the manufacturer associated with the part number identified above. 
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10 Shipment Value in U.S. Dollars 

 

 Z3 Unit Cost of Discrepant Material

 

(3) Revise SDR processing as documented below: Revise Reporting of Supply 

Discrepancies, DLA 4140.55, et al, as follows:

 C.2. The reporting of the following types of discrepancies is excluded from the provisions of this publication: 

 a. Shipping discrepancies found while material is in storage with the exception of short shipment and wrong 

item, discrepancies discovered upon opening a sealed vendors pack. (this exception applicable to U.S. 

Government only.) An additional exception is provided for material in storage in sealed pack later discovered to 

have been shipped with specified discrepancies to required Unique Item Identification (UID) data. These may 

be reported as SDRs and are not subject to submission time frames; refer to UID discrepancies under 

paragraph E.2.

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E.1.a. SDRs and associated responses may be reported on the SF 364, ROD; by electronic means, to include 

automated discrepancy reporting system and electronic data interchange (EDI); customer service help lines; email; or any other manner acceptable to the submitter and recipient. All manner of reporting must meet the criteria 

described in this document. DOD Components are encouraged to maximize the use of electronic 

reporting/response with the goal of paperless processing of supply discrepancies. Refer to DOD 4000.25-M, 

Defense Logistics Management System (DLMS), Vol 2, for additional guidance on transactional exchange of 

SDRs. Under DLMS, the SDR shall be considered a common logistics information exchange to be integrated 

with transaction processing through the Defense Automatic Addressing System (DAAS). The DOD approved 

standard for electronic transmission of SDRs is the DS to 842A Federal Implementation Convention (IC), 

Supply Discrepancy Report, an ASC X12-compliant variable-length transaction format for the purpose of 

communicating deficiency/discrepancy information. Multiple DS are provided to support different SDR related 

functions. The 842A/W, Standard SDR, shall be employed for transactional exchange of initial reports and 

associated actions. The 842A/R, DOD SDR Reply, shall be employed for transactional exchange of the SDR 

reply by the action point. DLMS supplements available at: http://www.dla.mil/j-6/dlmso/eLibrary/ 

Transformats/x12_810_858.asp. SDRs shall be submitted in accordance with Component-specific guidance 

via appropriate automated systems or via the internet-based DOD WebSDR available from the DAAS home 

page at https://www.daas.dla.mil/daashome/. While exceptions may be permitted, the DOD goal is that paper 

submission of SDRs will be phased out once full implementation of transaction exchange has been achieved. 

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E.2.f. (The following paragraph was approved under ADC 128, revisions are highlighted) Discrepancies in 

Unique Identification Data. Report discrepancies involving unique item identification under Unique Item 

Tracking (UIT) program requirements or as contractually required under Unique Item Identification (UID) 

program policy. Discrepancies may be related to the packaging label, including automated information 

technology (AIT); the item marking, including AIT; supply documentation; the due-in record; and/or a 

mismatch between the item and any of these. The elements which may comprise unique identification are: 

unique item identifier (UII), UII type, issuing agency code, enterprise identifier (or manufacturer’s CAGE), 

part number (original or current), serial number, and batch/lot number. The application of these elements will 

vary according the multiple factures such as the type of item and the specific contract requirements. At the time 

of this publication, implementation of UID policy and supporting automation is still on the horizon for many 

DLMS Note:

Use to indicate the total dollar value of the discrepant material.

DLMS Note:

Use to identify the unit value (price) of the discrepant material.
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shippers and receiving locations. Every effort should be made to facilitate reporting and processing of UID 

discrepancies under UIT and UID programs.

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E.4.a. Disposition. The reverse side of the SF 364 or electronic/automated response will be used to provide 

informative data to the initiator and as an action reply for discrepant conditions. For Service ICP directed 

shipments, the ICP is responsible for providing an SDR reply to the submitter, except as such responsibility has 

been specifically delegated to the shipping depot by the ICP. Where the SDR response is delegated to the 

shipping depot, a copy of the reply will also be furnished to the ICP which directed shipment. If acceptable to 

the U.S. Government submitter only, a verbal response is considered adequate when supported by an automated 

discrepancy reporting system. The response will indicate the appropriate disposition, e.g., acknowledgment of the 

report; disposition of the material for those discrepant conditions requiring disposition instructions to the reporting 

activity, such as, overages or receipt of an incorrect item; validation of the report with authorization to grant a 

financial adjustment; instructions for repair; or other types of corrective action. The action activity may will cite 

the appropriate disposition/status code (also referred to as reply code) as provided in Enclosure 6 or and annotate 

the SF 364 using the appropriate blocks when using hard copy. The action activity may request credit be 

authorized for customer-reported packaging discrepancies using the fund cite annotated on the SDR (block 13 of 

the SF 364) for reimbursement of corrective packaging costs incurred by the initiator. When requested credit is 

denied, the action activity will provide narrative explanation for the denial. For return of discrepant material, the 

action activity will direct the submitter to use the same document number under which the material was originally 

shipped where possible and for SA only, provide the Service/Agency transportation account code chargeable to 

return the discrepant material to the appropriate U.S. Government activity or other designated location. When 

appropriate, the action activity may direct the submitter to retain or return an exhibit of the discrepant material. 

The activity requesting this action will pay for exhibit shipment costs. Action activities will furnish DD Form 

1348-1A (Issue Release/Receipt Document) for material to be returned. A copy of the SDR and DD 1348-1A 

should be included with returned material and annotated SDR RETURN. 

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5. Time Standards 

 a. Submission of an SDR. Guidance specific to SA is provided in Enclosure 7 and reference A5. An SDR will 

be submitted by receiving activities and/or transshipment activities as soon as possible but not later than the time 

standards listed below. Time limits for reporting of discrepancies relating to contractor warranties are prescribed 

in individual warranty clauses and/or contracts. These time limits override other time limits specified here. For 

U.S. customers, time limits do not apply to short shipment and wrong item discrepancies discovered upon opening 

a sealed vendor pack. Time limits do not apply to unique item identification (UID) discrepancies discovered 

upon opening a sealed pack. These must be reported to ensure registry and/or owner records are properly 

maintained SDRs which do not meet the reporting criteria or timeframes specified in this guidance and do not 

present sufficient justification will be denied. 

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E.6.a. Follow up on Delinquent SDRs. When an action activity does not reply to an SDR within the prescribed 

timeframe, the reporting activity or the ILCO, acting on behalf of the SA customer, will send a follow-up inquiry 

using hard-copy or automated means. If no response was received to original SDR submission, then the followup will require all data in the original SDR. Follow-up SDRs that are unmatched to the recipient’s records will 

be treated as an original SDR. Follow-up transactions being treated as original SDRs are susceptible to all 

processes/validation associated with an original SDR. If an interim response has been received, then data 

sufficient to identify the SDR for which the follow-up is intended is required. Use the SDR report number and 

DAAS-assigned control number to identify the original report. Include point of contact information and date of 
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the follow-up. If applicable, reporting activities should allow for the mailing time of the original report before 

following up on action activities. See Enclosure 2 for instructions on preparing a SF 364 follow-up inquiry. 

 

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E. 7. Contested Reports 

 a. When a U.S. Government reporting activity does not concur with a reply/disposition received in response to 

an SDR, it may submit a request for reconsideration using hard-copy or automated means. When using hardcopy a copy of the report and all supporting correspondence/documentation, identifying the points of conflict or 

concern, to their Service/Agency SDR processing focal point office for assistance. When the discrepancy involves 

another Service/Agency, the focal point will review all data/documentation and, if the appeal is valid, will forward 

a request for reconsideration to the responsible Service/Agency designated focal point office (unless otherwise 

designated this will be the ICP/IMM). Requests for reconsideration pertaining to DOD shipments will not be 

forwarded to the shipping depot. Cite the SDR report number of the original report. For transactional 

exchange, include the DAAS-assigned control number when known. Requests for reconsideration transactions 

require all data that was in the previous SDR submission. In addition, a narrative entry is required to provide 

justification for reconsideration. Point of contact (POC) information for the new submission and submission 

date is required. The designated recipient of the request for reconsideration will review all data relating to the 

problem and provide a response to the reporting activity with information to all concerned parties. The decision 

will be rendered within 45 calendar days from the date of focal point correspondence is received. This decision 

will be final. 

 b. Security Assistance Requests for Reconsideration and Contested Reconsideration Decisions. Guidance 

specific to SA is provided in Enclosure 7. 

 c. The DOD ICP/IMM or GSA will review all correspondence/information relating to the SDR, initiate any 

required action, and reply to the ILCO within 60 calendar days from the date the action activity receives the ILCO 

correspondence with information to all concerned parties.

 8. Invalid/Incorrect Reports. When an SDR is later discovered to be incorrect or invalid, it will be cancelled or 

corrected using hard-copy or automated means. Only the SDR submitter, SDR submitter’s organization, or 

requisitioning agent shall be authorized to submit an SDR correction or cancellation. See Enclosure 2 

instructions for the preparing SF 364 cancellation and correction. 

 a. Correction and Modification of Original Report. When the originator wishes to modify data content or 

requested action concerning a previously submitted SDR, a corrected SDR may be used to accomplish this. For 

SF 364 reporting, indicate that the SDR is a correction and forward to all parties who received the original 

submission. SDR corrections must include the nonconformance report number of the original report. For 

transactional exchange, include the DAAS-assigned control number when known. Correction transactions 

require all valid data that was in the original SDR as well as the corrected data content. In addition to the 

revised data, a narrative entry is required to highlight/identify the nature of the change. Point of contact (POC) 

information for the new submission and submission date is required. With the exception of the SDR report 

control number(s) and the requisition number/suffix, all SDR data on the original report is eligible for 

correction/change. If the requisition number/suffix was incorrect on the original submission, the original SDR 

must be cancelled and a new SDR with the correct information may be submitted. Correction SDRs that are 

unmatched to the recipient’s records will be treated as an original SDR. Correction transactions being treated 

as original SDRs are susceptible to all processes/validation associated with an original SDR. 

 b. Invalid Previous SDR. An SDR may be cancelled when an SDR originator discovers a previously 

submitted SDR is not valid or appropriate for any reason and should be withdrawn. Indicate the SDR is a 

cancellation and forward to all parties receiving the original submission. Cite the SDR report number of the 

original report and the DAAS assigned control number when known. Do not duplicate detail information from 

the original report except as indicated in the DLMS Supplement. Provide POC information and date for the 

new submission and a narrative entry to describe the reason for the cancellation. Cancellation may be 

submitted against SDRs in an open or interim status.

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9. Defense Automatic Addressing System (DAAS). 
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 a. Under DLMS, SDRs shall be integrated with standard logistics transaction processing through the DAAS. 

DAAS shall perform the following actions: 

 (1) Pass/route SDR transactions. 

 (2) Edit SDR transactions in accordance with business rules specified below. 

 (3) Provide translation capability to support a variety of communications methods for exchanging 

computer-readable SDR transactions. 

 (4) Maintain historical records of SDRs and associated transactions. 

 (5) Provide access to SDR information via Web Visual Logistics Information Processing System 

(WEBVLIPS). 

 (6) Provide management reports. 

 (7) Maintain the DOD WebSDR as a value-added service to support submission, reply, and other functions 

related to SDR processing. 

 

 b. DAAS will edit SDR transactions prior to passing/routing to ensure minimal standards of acceptability are 

met: 

 (1) Reject to the generating activity SDR and follow-on transactions that do not meet the following 

conditions. 

 (a) SDR related transactions must contain valid values as appropriate to the transaction purpose: 

Discrepancy Code, Action Code, and Disposition/Status (Reply) Code. Reject with disposition/reply code 915, 

916, or 927. 

 (b) SDR must include material identification. Material identification may consist of the National Stock 

Number, manufacturer’s part number and manufacturer’s CAGE, or manufacturer’s part number and a 

description. Where wrong item discrepancies are reported, material identification of the wrong item must be 

included. Wrong item received may be identified as previously indicated or by description alone (citing 

“UNKNOWN” as the wrong item part number). Reject with disposition/reply code 931. 

 (c) SDRs reporting material received is not in the correct condition must include valid condition codes to 

identify the received conditions. Only valid condition codes will be permitted. Reject with disposition/reply code 

928. 

 (d) SDRs coded to indicate narrative is required must provide applicable narrative. Reject with 

disposition/reply code 924. 

 (e) SDRs must include minimal point-of-contact information to include name and phone/email. Reject 

with disposition/reply code 920 or 921. 

 (f) Only valid DODAACs and Routing Identifiers will be permitted. Reject with disposition/reply code 

929. 

 (g) Quantity fields will only allow entry of numeric values. Reject with disposition/reply code 917 or 

918. 

 (h) SDRs for material identified by National Stock Number which are forwarded to DLA Business 

Systems Modernization (BSM) (RI SMS), must identify BSM as the source of supply. Reject with 

disposition/reply code 901. 

 

 (i) SDR replies coded to indicate that a ship-to/mail to address or additional information is associated 

with the reply, must include the specified additional address or information as transaction data fields or must 

include narrative remarks. Reject with disposition/reply code 930. 

 c. DAAS will edit SDR submissions via DOD WebSDR at the point of entry to improve the accuracy of the 

data content. All of the above criteria apply. In addition, web-specific functionality includes: 

 (1) The SDR submission process will be facilitated by the auto-population of data content based upon the 

shipment and cataloguing data available to DAAS. 

 (2) Address information will be retrieved based upon DODAAC and Routing Identifiers. User generated 

updates to initiator’s address are permitted and will be passed to the receiving system for information, but will 

not impact SDR processing. 

 (3) SDR replies coded to indicate that an address or additional information is associated with the reply, 

must include the specified additional address or information. 

 d. DAAS will provide the support to SDR transaction exchange to facilitate DLMS processes. 

 (1) DAAS will facilitate appropriate distribution when the action party receiving the initial distribution 

employs the distribution/reply code 504 indicating the SDR must be forwarded to a new action activity. When 
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the new action activity is a Distribution Depot (DD), the original SDR will be retransmitted to the designated 

DD. The customer will receive notification of interim status. 

 (2) DAAS will facilitate appropriate distribution when the action party receiving the initial distribution 

employs distribution/reply codes in the 300 series indicating that the SDR must be forwarded to the Source of 

Supply (SoS) for disposition. The SDR reply will be forwarded to the designated SoS and to the SDR initiator 

for notification of interim status. 

 (3) DAAS will provide information copies of SDRs in accordance with Component business rules and as 

designated by the initiator. | 

 (a) DLA BSM will receive an information copy of all SDRs routed to the DD for initial action where BSM 

is the SoS. 

 (b) All parties receiving an information copy of the original SDR as designated by the initiator or by a 

Component business rule will receive a copy of all changes, cancellation, and replies associated with the SDR. 

Renumber remaining paragraphs in this section. 

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Enclosure 7 for Security Assistance, B.1.a. Product Quality (Item) Deficiencies. The SA customer must provide 

evidence that a receipt inspection was performed and the defect could not be detected at that time and that the 

defect is present for reasons other than deterioration or damage incurred during storage or handling. Quality 

deficiencies include deficiencies in design, specification material, manufacture, and workmanship. The submitter 

may identify latent defects and quality deficiencies which result in a safety hazard. A detailed description of the 

complaint may be provided if needed to supplement discrepancy codes. In addition provide photographs, test data, 

and related documentation, if available. The ILCO shall be responsible for insuring that SA SDRs reporting 

product quality deficiencies contain appropriate Product Quality Deficiency Report (PQDR) data content. 

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14. Requests for Reconsideration. The SA customer may ask the U.S. Government to reconsider the final status 

for an SDR. Customers must send written requests, to reach the ILCO within 90 calendar days from the date of 

the ILCO reply to the customer concerning disposition as provided by the responsible action activity. When the 

customer asks for reconsideration, the ILCO will add a suffix code R to the SDR number (item 2, SF 364). The 

ILCO will add its comments and send the SDR, together with all applicable correspondence/information, to the 

appropriate DOD ICP/IMM or GSA action activity for reconsideration within 30 days of receiving the request for 

reconsideration from the customer. This may be accomplished via hard copy or electronic request for 

reconsideration SDR transaction. The action activity will review to determine if the request should be honored, 

initiate any required action, and reply to the ILCO within 60 calendar days from the date of the ILCO 

correspondence. ILCOs will notify the ICP/IMM or GSA when extenuating circumstances require additional 

processing time beyond the 120 days allowed for submission and ILCO research. This will allow the ICP to retain 

applicable documentation for SDR resolution. 

15. Contested Reconsideration Decisions. SA customers may contest the DOD ICP/IMM or GSA decision on a 

request for reconsideration. To do so, the customer must send written request to reach the ILCO within 90 

calendar days from the date of the ILCO reply to the request for reconsideration. The customer must explain why 

the DOD ICP/IMM or GSA decision is not satisfactory. When the customer contests a DOD ICP/IMM or GSA 

decision, the ILCO will add a suffix code C to the SDR report number. The suffix code will be used in all 

references to the SDR. The SDR and all supporting documentation will be forwarded by letter within 15 calendar 

days to the ILCO's Military Service/Agency focal point who will review all the information relating to the 

problem, see that any needed action is taken, and send the ILCO the final decision within 60 calendar days from 

the date of the ILCO correspondence. Copies of all information/ documentation relating to the request shall be 

included with all correspondence exchanged between the parties involved. Contested reconsideration requests 

may be accomplished via hard copy or electronic SDR transaction. 
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C.1. h. Receive and review SDR replies from the action activity; and return with comment to the action activity 

when the reply is incomplete or inaccurate for the reported discrepancy. 

(4) Revise Reporting of Supply Discrepancies, DLA 4140.55, et al, Enclosure 4, 

Typical Shipping and Packaging Discrepancies Listed by Discrepancy Code, as follows:

U10 Mismatched or missing unique identification discovered upon opening a 

sealed vendor’s pack. 

(5) Revise Reporting of Supply Discrepancies, DLA 4140.55, et al, Enclosure 6, 

Typical Action Activity Responses Listed by Disposition Status Code, as shown in attachment 

1. 

5. REASON FOR CHANGE 

a. The 842 transaction business rules are evolving as the Components and DAASC 

attempt to implement. This change represents further fine-tuning of the transaction data 

contents and procedures to accommodate both standard and Component unique requirements. 

b. Revised Disposition/Status Codes were recommended by the SDR IPT. 

c. This change formally addresses additional transaction processing and web support 

provided by DAASC and documents this within published guidance. 

6. ADVANTAGES AND DISADVANTAGES: 

a. Advantages: Supports DLMS implementation and Business Initiatives Council (BIC) 

SDR Transformation Initiative. 

b. Disadvantages: None identified. 

7. IMPACT: 

 a. Data Content/Procedures: The capability to provide SDRs in the DLMS format must 

be incorporated in the Component system design. This change supports Component data 

requirements. 

b. Publication(s): 

 (1) The Federal IC 842A 

 (2) DOD 4000.25-M, DLMS 
1

ENCL 6 

DLAI 4140.55 

AR 735-11-2 

SECNAVINST 4355.18A 

AFJMAN 23-215 

TYPICAL ACTION ACTIVITY RESPONSES 

LISTED BY DISPOSITION/STATUS CODE 

Action activities use the following list of codes to provide a reply to an SDR. Multiple codes are used on 

a single report to provide complete financial and material disposition instructions and provide additional 

information as needed. Use up to three reply codes to identify disposition for customer- originated, 

vendor shipment and customer-originated, depot shipment SDRs. Pending full DLMS capability, use 

only one reply code on depot-originated, customer return and depot-originated vendor shipment 

SDRs. Codes are required for transactional exchange of SDRS and may be used to replace or 

supplement preprinted information on the reverse side of the SF 364. These codes are authorized for 

use in all reporting formats. Where possible, system design should accommodate in-the-clear text for 

ease of use. 

The 100-series codes provide status of financial resolution, material disposition instructions, or other 

appropriate information. 

101 Credit authorized/recommended. 

102 Credit not authorized. See remarks.

104 Additional clarification required from customer. See remarks. [Moved to interim reply 

grouping] 

105 Forward material received to address shown. Must use traceable and most economical means 

available. 

106 Forward material received to contractor address shown. Must use traceable and most 

economical means available. 

107 Forward material address shown for inspection/exhibit analysis. Must use traceable and most 

economical means available. [Moved to interim reply grouping] 

108 Forward material to contractor address shown for inspection/exhibit analysis. Must use 

traceable and most economical means available. [Moved to interim reply grouping] 

110 Disposal authorized in accordance with local procedures. 

111 Disposal authorized, monetary reimbursement from contractor. 

112 Disposal authorized, contractor will provide replacement. 

113 Provide disposal documentation to address shown. 

114 Provide disposal documentation by date indicated to address shown. Credit will be authorized 

upon receipt. 

115 Turn in material received to Defense Reutilization and Marketing Office (DRMO). 

116 Turn in hazardous material received to Defense Reutilization and Marketing Office (DRMO). 

MIPR/Bill To DODAAC provided to cover disposal costs. 

117 Material will be billed if not returned by date indicated. 

118 Debit authorized for material retained. 

119 Retain material received at no charge. 

120 Retain material with consideration from contractor. 

121 Retain material without consideration from contractor. 

122 Retain material for future supply decision. 

123 Material will be reshipped (estimated date of replacement shipment provided when known).
2

124 Material is no longer procurable. 

125 Incomplete part/missing component being forwarded. 

126 Stock not available for reshipment. Your requisition has been reinstated and will be placed on 

backorder. 

127 Contractor to reship. 

128 Balance of contract material will not be shipped. 

129 Reimbursement for repackaging discrepancy cannot be authorized until submitter provides 

cost for repackaging. 

130 Place material in stock as is. 

131 Remark/repackage material and place in stock. 

132 Inspect and place in depot stock. 

133 Upgrade material to Condition Code A, correction made by government with reimbursement 

from contractor. 

134 Upgrade material to Condition Code A, correction made by government without 

reimbursement from contractor. 

135 Documentation/technical data is being forwarded. 

136 Confirmed canceled requisition shipped. 

137 Additional comments provided. See remarks. 

138 Shipment shortage based on pieces, weight, and cube. 

139 Warehouse denial total shipment. 

140 Warehouse denial partial shipment. 

141 Duplicate shipment from stock or procurement. 

142 Proof of Delivery/Evidence of Shipment not available. 

143 SDR canceled by submitter. 

144 Recorded for information only. No action taken. 

145 No contractor liability found. 

146 Material return acknowledged. 

147 Corrected shipment document (DD Form 250) provided. 

148 Representative will contact you for discussion concerning disposition. 

149 Material will be picked up in number of days indicated. 

The 200-series codes provide additional information relevant to Security Assistance SDRs. 

201 Incorrect information provided by U.S. Government contract. 

202 MAPAD information not current by U.S. Government error. 

203 Material erroneously returned to U.S. Government stock. 

204 Overage of Repair and Replace material. 

205 Shortage of Repair and Replace material. 

206 Administrative write-off recommended. 

207 No financial adjustment required. Excess Defense Articles (EDA). Overage not billed. 

208 Repaired in-country by contractor or U.S. Government personnel. 

The 300-series codes indicate Distribution Depot status on SDRs forwarded to a non-DLA 

action activity. 

301 SDR forwarded for disposition by USA as indicated.

302 SDR forwarded for disposition by USAF as indicated.

303 SDR forwarded for disposition by USMC as indicated.

304 SDR forwarded for disposition by USCG as indicated. 
3

305 SDR forwarded for disposition by USN as indicated. 

306 SDR forwarded for disposition by GSA as indicated. 

307 SDR forwarded for disposition by DLA as indicated. 

The 400-series codes indicate the SDR has been closed for the reason provided. 

400 SDR closed. Non-compliance with disposition instructions. 

401 SDR closed. Non-response to additional information request. 

402 SDR closed. Wrong material returned. 

The 500-series (and some 100-series) codes indicate an interim reply. 

103 Discrepancy report receipt acknowledgment. 

104 Additional clarification required from customer. See remarks. 

107 Forward material address shown for inspection/exhibit analysis. Must use traceable and 

most economical means available. 

108 Forward material to contractor address shown for inspection/exhibit analysis. Must use 

traceable and most economical means available. 

501 SDR assigned to Defense Contract Management Agency (DCMA) for investigation. 

502 SDR resolution deferred pending receipt of exhibit. 

503 SDR currently under investigation. 

504 SDR submitted to incorrect action activity. SDR forwarded as shown. SDR forwarded to new 

action activity as shown. 

505 SDR under investigation. SDR has been forwarded to activity identified for additional action. 

506 Item has been transferred to new item manager. Referred to gaining item manager (GIM) for 

disposition. 

507 SDR forwarded to shipping depot for Proof of Delivery. 

508 SDR forwarded to shipping depot for Evidence of Shipment. 

509 SDR forwarded to local procurement office for action. 

510 SDR forwarded to Item Manager for research and/or disposition instructions. 

511 SDR forwarded to Industrial Operations Command for action. 

512 SDR forwarded to Simplified Nonstandard Acquisition Program (SNAP) Project Office for 

action.

513 SDR forwarded to IL Directorate or Repair and Return Office for research of R&R case. 

514 SDR forwarded to the packaging specialist for research. 

515 Procurement/Defense Contract Management Agency awaiting response from contractor. SDR 

suspended. 

516 Receipt of material returned by customer has not posted to date. Under investigation. 

517 Defense Finance and Accounting Service (DFAS) billing information requested. 

518 Your SDR identifies a transportation discrepancy and is being processed as a Transportation 

Discrepancy Report (TDR). 

519 Your SDR identifies a quality deficiency and is being processed as a Product Quality 

Deficiency Report (PQDR). 

The 600-series codes indicate an ICP reply to the Distribution Depot. 

601 Change Supply Condition Code and submit as new complaint (original complaint 

cannot be modified to reflect new supply condition code). 

602 Item(s) Unsuitable, Destroy. 

603 Remark and Return to Stock. 
4

604 Repackage and Return to Stock. 

605 Re-Identify and Return to Stock. 

606 Safety Hazard, Destroy. 

607 Safety Hazard, Dispose. 

The 700-series codes indicate SDR rejection: 

701 SDR rejected. See remarks. 

702 SDR rejected. Material shipped as requisitioned. 

703 SDR rejected. Overage/shortage is within contract variation clause. 

704 SDR rejected. Evidence of shipment/proof of delivery forwarded. 

705 SDR rejected. Records indicate the inspection or test date or this shelf-life item has been 

extended to date indicated. 

706 SDR rejected. Shelf-life not applicable for this item. 

707 SDR rejected. Acceptable substitute issued for material requisitioned. 

708 SDR rejected. Material shipped prior to cancellation request. 

709 SDR rejected. Discrepant quantity shipped after SDR submission. 

710 SDR rejected. Discrepant quantity on backorder. 

711 SDR rejected. Material shipped via insured/certified/registered mail. Request you contact 

local postal authority to verify delivery of material. 

712 SDR rejected. Submit offer of material under material returns program. 

713 SDR rejected. Discrepancy does not meet required minimum dollar value. 

714 SDR rejected. Billing adjustments for other than Security Assistance may not be requested on 

a SDR. Contact local finance office. 

715 SDR rejected. Discrepancy not reported within required timeframe. 

716 SDR recorded for information and possible corrective action. 

717 SDR identifies a carrier discrepancy. Resubmit as a Transportation Discrepancy Report 

(TDR).1

718 SDR identifies a quality deficiency. Resubmit as a PQDR.1

719 SDR rejected. Duplicate of previously submitted SDR. 

1

 Use of this code is discouraged. Every effort should be made to process the discrepancy report and 

resolve the situation without requiring the initiator to resubmit. See preferred codes 518 and 519. 

The 800-series codes provide additional rejection notices relevant to Security Assistance SDRs: 

800 SDR rejected. No U.S. Government liability. 

801 SDR rejected. No billing discrepancy exists. 

802 SDR rejected. Bill reflects prepositioning costs/nonrecurring costs. 

803 SDR rejected. Bill reflects contract termination charge. 

804 SDR rejected. Item proven serviceable when shipped (R&R, exhibits). 

805 SDR rejected. Freight forwarder tracking system indicates material received. Customer 

should challenge freight forwarder. 

806 SDR rejected. Repair/adjustment procedures provided by source. 

807 SDR rejected. Material shipped to address specified on LOA in lieu of country. 

808 SDR rejected. SDR does not meet latent defect criteria and is, therefore, beyond the allotted 

timeframe for submission 

809 SDR returned without action. Credit cannot be granted since debit billing has not processed. 

(ILCO use only.) 
5

810 Freight forwarder notification not submitted for total nonreceipt. 

The 900-series codes are intended for system/application use in processing transactions: 

901 Transaction rejected. Item shipped/billed by another supply source. SDR submitted to wrong 

 source of supply. Resubmit to the correct action activity. 

902 Transaction rejected. Invalid action code for type of discrepancy submitted. 

903 Transaction rejected. Invalid SDR for combination of requisitioned quantity and canceled 

quantity.

904 Transaction rejected. Open suffix must be closed before SDR can be reopened. 

905 Transaction rejected. Simplified Nonstandard Acquisition Program (SNAP) requisitions can 

only be processed by TACOM and transaction Routing Identifier Code (RIC) indicates another 

source of supply.

906 Transaction rejected. Record already closed. 

907 Transaction rejected. Record closed, canceled, or a final reply has been provided. 

908 Transaction rejected. Record is currently open and cannot be reopened for reconsideration

until current suffix is closed. 

909 Transaction rejected. SDR must be reopened with suffix R as a for reconsideration before it 

can be contested using suffix C. 

910 Transaction rejected. Missing or invalid document number. 

911 Transaction rejected. Missing or invalid case designator. 

912 Transaction rejected. Missing or invalid SDR number. 

913 Transaction rejected. Invalid SDR suffix.

914 Transaction rejected. Invalid preparation/submission date.

915 Transaction rejected. Missing or invalid type of discrepancy code. 

916 Transaction rejected. Missing or invalid action desired code. 

917 Transaction rejected. Missing or invalid discrepant quantity. 

918 Transaction rejected. Missing or Invalid quantity received. 

919 Transaction rejected. Invalid interim statement number.

920 Transaction rejected. Missing or invalid point of contact name. 

921 Transaction rejected. Missing or invalid point of contact phone number/email. 

922 Transaction rejected. Invalid document to follow indicator.

923 Transaction rejected. Missing or invalid transaction date. 

924 Transaction rejected. Narrative missing. 

925 Transaction rejected. Invalid narrative attached indicator.

926 Transaction rejected. No record found. 

927 Transaction rejected. Missing or invalid disposition/reply code 

928 Transacion rejected. Missing or invalid condition code. 

929 Transaction rejected. Missing or invalid DODAAC, MAPAC, or Routing Identifier. 

930 Transaction rejected. Missing information associated with disposition/reply. 

931 Transaction rejected. Missing or invalid material identification.